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  • FIRST POST
    • Silence101
    • By Silence101 3rd Aug 17, 4:27 PM
    • 240Posts
    • 388Thanks
    Silence101
    Half a house
    • #1
    • 3rd Aug 17, 4:27 PM
    Half a house 3rd Aug 17 at 4:27 PM
    So we're applying for a mortgage for a shared ownership. IF it goes ahead I want to try and overpay a little every month and save up for the deposit for the 2nd half.
    If it doesn't go ahead I want to save up more deposit. Either way I need to try and stay accountable!

    I was thinking of dividing our spare monthly cash in 4 (after bills and food etc)
    a) 1/4 to overpay mortgage
    b) 1/4 to save towards deposit
    c) 1/4 to save for emergency fund etc
    d) to spend

    If the mortgage doesn't work out I'll be putting a+b towards a deposit to improve our LTV rates.
    Is it a realistic division or would you add more categories, like home improvement?

    UPDATE (p8)
    We have got the keys! I'll update some more once we have all the paperwork sorted.
    Last edited by Silence101; 27-09-2017 at 7:24 PM. Reason: We've bought the house!
Page 1
    • Silence101
    • By Silence101 3rd Aug 17, 9:13 PM
    • 240 Posts
    • 388 Thanks
    Silence101
    • #2
    • 3rd Aug 17, 9:13 PM
    • #2
    • 3rd Aug 17, 9:13 PM
    I've done some basic calculations, and it looks like we might be able to save £45/month for each pot.
    Hopefully we'll find ways of cutting back even more, but the last few months we've not been saving anything at all. I had a look on the overpayment calculator, and even paying just £5 more a month on our (hopefully) soon to be mortgage would cut down one year to our payment plan. So I need to remember that every little bit really does help. We'll have quite a lot of expenses when (if) we first move so we might stick to a very low overpayment the first few months. But I don't want to get complacent as we really do need to be quite intransigent if we plan on affording the 2nd half of the house.
    09/17 Shared Ownership 50% share - Mortgage £77500 Original MFW 2052
    10/17 OP £50
    • Silence101
    • By Silence101 4th Aug 17, 10:32 PM
    • 240 Posts
    • 388 Thanks
    Silence101
    • #3
    • 4th Aug 17, 10:32 PM
    • #3
    • 4th Aug 17, 10:32 PM
    I've drawn three grids that will be filled up every £100.
    Aim is for £5000 emergency fund
    Deposit for 2nd half £30000
    And to overpay by £15000

    I think we'll be concentrating on the EF first but may alternate deposit fund and overpayment fund as we go.

    We're trying to save as much as possible these next few months to afford the flooring and other bits, as the fees etc are making quite a dent in our savings. I'm working on the assumption that we'll have £500 or less left over for the EF by the time we buy the house. If it all falls through, we'll at least have a slightly healthier EF so will be able to save for a bigger deposit until we attempt to buy again. (As we can only afford a shared ownership at the moment, I'm not sure how often we'll find one on the market, so we might only try again in a couple of years.) Obviously the hope is that it all goes smoothly this time and we won't have to go through this again!
    09/17 Shared Ownership 50% share - Mortgage £77500 Original MFW 2052
    10/17 OP £50
    • penny*pincher
    • By penny*pincher 5th Aug 17, 7:44 AM
    • 43 Posts
    • 137 Thanks
    penny*pincher
    • #4
    • 5th Aug 17, 7:44 AM
    • #4
    • 5th Aug 17, 7:44 AM
    Hi Silence101

    You appear very motivated with your goals, I will be following your journey

    Saving for a deposit is hard, I am doing that exact same thing at the moment. I am hoping to be in a position to buy next year, fingers crossed!! I have found not popping to the shop and not ordering online has really allowed my bank balance to remain stable (who'd have known haha!! )

    • Silence101
    • By Silence101 5th Aug 17, 11:29 AM
    • 240 Posts
    • 388 Thanks
    Silence101
    • #5
    • 5th Aug 17, 11:29 AM
    • #5
    • 5th Aug 17, 11:29 AM
    Haha, yes, I usually have no problem not spending, until I have to go to the shops for a necessary thing and come back with a million and one impulse buys! Same with online shopping. I don't usually use it but when I do I seem to have a binge of buying everything and anything.
    At least we're not in debt (apart from student loans)but it is scary to think how much we could have saved by now if we had been sensible!
    09/17 Shared Ownership 50% share - Mortgage £77500 Original MFW 2052
    10/17 OP £50
    • penny*pincher
    • By penny*pincher 5th Aug 17, 8:38 PM
    • 43 Posts
    • 137 Thanks
    penny*pincher
    • #6
    • 5th Aug 17, 8:38 PM
    • #6
    • 5th Aug 17, 8:38 PM
    I just wrote the exact same thing on my diary - I would have saved so much over the years!! But it sounds like we are both in good positions with only student loans to pay off.... and thankfully, I never see that money so I never really notice it has been taken

    Onwards and upwards
    Last edited by penny*pincher; 05-08-2017 at 8:38 PM. Reason: spelling!
    Help to Buy ISA: July 2017 £1200.00, August 2017 £1400.00, September 2017 £1604.01
    Savings: July 2017 £13,312.56, August 2017 £14,312.56, September 2017 £17,513.71
    - And so you all know - I absolutely LOVE Christmas!!
    • Silence101
    • By Silence101 5th Aug 17, 9:10 PM
    • 240 Posts
    • 388 Thanks
    Silence101
    • #7
    • 5th Aug 17, 9:10 PM
    • #7
    • 5th Aug 17, 9:10 PM
    Yes, I'm so impressed with people who have managed to pay off huge debt and still pay off their mortgage early!

    Our potential mortgage is a 35 year one, which just seems crazy! And it's only for half the house! So we really need to find ways to save up, to be in a position to buy the rest.

    At the moment I'm a sahm so my job is to keep the kids entertained and fed on the smallest budget possible, and hopefully we'll be able to save/overpay a lot more when I return to work (in 2 years time) It'll be interesting to see how much we can squirrel away with 2 incomes, but it's a bit frustrating when I know I can't do much towards it for the time being.
    09/17 Shared Ownership 50% share - Mortgage £77500 Original MFW 2052
    10/17 OP £50
    • shangaijimmy
    • By shangaijimmy 5th Aug 17, 9:22 PM
    • 2,207 Posts
    • 10,145 Thanks
    shangaijimmy
    • #8
    • 5th Aug 17, 9:22 PM
    • #8
    • 5th Aug 17, 9:22 PM
    Don't worry you two, give it 6 months and you'll both have developed a phobia for spending and an addiction for saving/OPing even the tiniest amounts
    MFW: Turning June 2036 into March 2023... 30//120 Payments Challenge, Diary Reduction £32,077.72
    Aug 2009: £163,051 // Current: £103,922.28 // Avg Daily Interest £4.67
    MFiT-T4 #8 - 47.86% of £41,000
    • Silence101
    • By Silence101 6th Aug 17, 9:08 AM
    • 240 Posts
    • 388 Thanks
    Silence101
    • #9
    • 6th Aug 17, 9:08 AM
    • #9
    • 6th Aug 17, 9:08 AM
    Don't worry you two, give it 6 months and you'll both have developed a phobia for spending and an addiction for saving/OPing even the tiniest amounts
    Originally posted by shangaijimmy
    I hope so
    I guess it's easier to save when there's a goal, instead of just for the sake of it.
    I do ever so often try and send change over to my ISA, and it does slowly build up, but I don't do it regularly enough to really make a difference.
    09/17 Shared Ownership 50% share - Mortgage £77500 Original MFW 2052
    10/17 OP £50
    • Silence101
    • By Silence101 7th Aug 17, 8:04 AM
    • 240 Posts
    • 388 Thanks
    Silence101
    Transfer £52.60 into my "rent" account. I'm not using my ISA at the moment as I don't know when we need to pay for solicitors etc and can't afford any delays as the exchange deadline is so soon.

    Currently have £2543 in rent account, but that will all be gone by the time we've paid rent and solicitors and whatever other fees we need. So I'm not adding it to my signature as none of it will be going towards a deposit at this time.

    I've calculated my average income a week and I plan to transfer whatever I haven't spent into the rent account. I usually end up spending it if I keep it in my current account so I need to physically move it! I'm wondering if I should move all the money out into a different account except a week's worth of income, and then retransfer weekly amounts each Monday. The main issue would be to remember that x amount isn't actually savings but is needed for upcoming weeks.
    09/17 Shared Ownership 50% share - Mortgage £77500 Original MFW 2052
    10/17 OP £50
    • shangaijimmy
    • By shangaijimmy 7th Aug 17, 8:12 AM
    • 2,207 Posts
    • 10,145 Thanks
    shangaijimmy
    I hope so
    I guess it's easier to save when there's a goal, instead of just for the sake of it.
    I do ever so often try and send change over to my ISA, and it does slowly build up, but I don't do it regularly enough to really make a difference.
    Originally posted by Silence101
    I recommend a daily TT of current account. Every morning i round down to the nearest £1 into an online saver, then i send the pot across to the mortgage each Sunday. It usually end around £3.50 a week. Great for motivation and keeping some momentum in a quiet period.
    MFW: Turning June 2036 into March 2023... 30//120 Payments Challenge, Diary Reduction £32,077.72
    Aug 2009: £163,051 // Current: £103,922.28 // Avg Daily Interest £4.67
    MFiT-T4 #8 - 47.86% of £41,000
    • Silence101
    • By Silence101 7th Aug 17, 8:18 AM
    • 240 Posts
    • 388 Thanks
    Silence101
    I recommend a daily TT of current account. Every morning i round down to the nearest £1 into an online saver, then i send the pot across to the mortgage each Sunday. It usually end around £3.50 a week. Great for motivation and keeping some momentum in a quiet period.
    Originally posted by shangaijimmy
    I will try to do that, as a daily habit is more likely to stick. I've tried to get my husband on board with the idea but he's not keen. So most of the savings efforts will be on my part. At least he's not a big spender so we're not in a 1 step forward, 2 steps back situation.
    09/17 Shared Ownership 50% share - Mortgage £77500 Original MFW 2052
    10/17 OP £50
    • Silence101
    • By Silence101 8th Aug 17, 10:22 AM
    • 240 Posts
    • 388 Thanks
    Silence101
    TT £2 today, to round up the rent account to £2545. I will probably round up the rent account one day and round down the current account the next, so will be transferring £5 every two days if I haven't spent money.
    Trying to declutter loads from the house this week, it's always a good reminder to stop buying stuff!
    09/17 Shared Ownership 50% share - Mortgage £77500 Original MFW 2052
    10/17 OP £50
    • Silence101
    • By Silence101 9th Aug 17, 11:03 AM
    • 240 Posts
    • 388 Thanks
    Silence101
    Just had an email from solicitors and their fee estimate is £100 more than originally quoted... this house buying is getting expensive!
    Sent £3 to savings pot, but we'll obviously have to be stricter yet. Had a NSD yesterday, and will try for another one today but I will need to buy printer ink before the end of the week, with all the forms we need to fill in.
    09/17 Shared Ownership 50% share - Mortgage £77500 Original MFW 2052
    10/17 OP £50
    • Jessy103
    • By Jessy103 9th Aug 17, 11:31 AM
    • 448 Posts
    • 1,889 Thanks
    Jessy103
    Hi Silence101! Sounds like you've made a great start already and I wish you the best of luck! I think everyone on this forum wishes they'd started earlier! We've been in our house for 10 years now and only really started tackling the mortgage late last year! I try not to think of all the money I've wasted over the years else I may start comfort eating! Lol!
    Original Mortgage Amount 2007 - £87,310.50
    Mortgage Amount July 2017 - £62,900.00
    Overpayment Target for 2017 - £5,000 /£3,679.09
    Jan - £873.26 Feb - £185.38 March - £269.07 April - £193.66 May - £467.64 June - £407.79 July - £849.96 August - £255.11 September - £177.22
    • Silence101
    • By Silence101 9th Aug 17, 11:59 AM
    • 240 Posts
    • 388 Thanks
    Silence101
    Hi Silence101! Sounds like you've made a great start already and I wish you the best of luck! I think everyone on this forum wishes they'd started earlier! We've been in our house for 10 years now and only really started tackling the mortgage late last year! I try not to think of all the money I've wasted over the years else I may start comfort eating! Lol!
    Originally posted by Jessy103
    Thanks!

    I think my determination is because we're buying into a shared ownership, and the quickest we can afford the whole house the better. But I'm afraid the first few years may be slow going but hopefully we can make a start towards it asap.
    The next 2 months worth of savings are going to be eaten up in fees and flooring, but if we can avoid any debt to pay for all those (except mortgage) it'll make things a lot easier!
    09/17 Shared Ownership 50% share - Mortgage £77500 Original MFW 2052
    10/17 OP £50
    • Silence101
    • By Silence101 9th Aug 17, 5:07 PM
    • 240 Posts
    • 388 Thanks
    Silence101
    Getting cold feet about the whole thing... I'm sure it'll be fine once it's all sorted, but can't get my head around being in debt for 35 years and being broke trying to overpay it. It just seems like we're purposefully making ourselves broke, just to buy a house. I grew up in quite a poor household and it's just a horrible feeling of constant tension, so I'm probably projecting what the next 5+ years will be like. I'm not working at the moment because of the cost of childcare but I can just see that I'm going to have to find a job asap, end up doing something I don't like just to pay the bills, and not even breaking even due to childcare or school hours. I wasn't planning on buying anything for the foreseeable future. I mean, we're trying to buy a shared ownership because we can't afford to buy a house in this area, and I can't see that changing anytime soon.

    I'm sure there's lots of positives to buy now but at the moment I'm just seeing the life of debt we're entering in, that we can't really afford.
    09/17 Shared Ownership 50% share - Mortgage £77500 Original MFW 2052
    10/17 OP £50
    • Jessy103
    • By Jessy103 10th Aug 17, 12:31 PM
    • 448 Posts
    • 1,889 Thanks
    Jessy103
    I'm sorry you're feeling like this silence. It is one of the biggest decisions you'll ever make and very scary! Have you spoken to the citizens advice bureau to make sure you're getting all the help and benefits that you're entitled to? x
    Original Mortgage Amount 2007 - £87,310.50
    Mortgage Amount July 2017 - £62,900.00
    Overpayment Target for 2017 - £5,000 /£3,679.09
    Jan - £873.26 Feb - £185.38 March - £269.07 April - £193.66 May - £467.64 June - £407.79 July - £849.96 August - £255.11 September - £177.22
    • Silence101
    • By Silence101 10th Aug 17, 3:49 PM
    • 240 Posts
    • 388 Thanks
    Silence101
    Thanks, feeling a bit better about things today. I guess we're committed to doing it now, so it's a question of seeing it through. Maybe we won't ever be in the position of buying the whole house and I should just work with what we've got.
    Yes we're claiming everything we can but we'll lose some when we buy as we won't be entitled to some. And we're using all our savings, so I'm feeling like we're going to be in a precarious situation for the next year, trying to build up our emergency fund again. I don't think I realised how much peace of mind it gave me, having that money available if need be.
    09/17 Shared Ownership 50% share - Mortgage £77500 Original MFW 2052
    10/17 OP £50
    • shangaijimmy
    • By shangaijimmy 10th Aug 17, 7:50 PM
    • 2,207 Posts
    • 10,145 Thanks
    shangaijimmy
    The first 2 years or so for the vast majority in a new house is tough, as people naturally stretch themselves to get the best they can. I know people have had much worse interest rates than us but when we bought in 2006 we could only afford interest only mortgage (would never have gotten such a big mortgage in the post financial crash world). Every 3 months for the first 18 months the interest rates went up. We went from approx £690 to £900 a month, but we found a way due to budgets and discipline. And now it was all worth it, and i still like eating baked beans on toast!!

    My advice is not to look too far ahead, and i'd suggest 5yrs is too far. Focus on the next 3-6 months, then re-evaluate and go again!

    And whatever does happen having your diary to vent, share and seek advice/reassurance is a fantastic asset.
    MFW: Turning June 2036 into March 2023... 30//120 Payments Challenge, Diary Reduction £32,077.72
    Aug 2009: £163,051 // Current: £103,922.28 // Avg Daily Interest £4.67
    MFiT-T4 #8 - 47.86% of £41,000
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